This study empirically evaluates the business performance outcomes of aligning an organization?s information technology (IT) competencies with its strategic competencies. Strategic competencies include components such as shared vision, cooperation, empowerment, and innovation, whereas IT competencies comprise connectivity, flexibility, and technological scanning. Top managers from 104 organizations completed a questionnaire analyzed with EQS, a structural equation modeling tool. Based on a covariation approach to alignment, results confirm that strategic and IT competencies alignment significantly enhances perceived business performance.